The Right Property Manager For Your Real Estate Investement

Property management is the direction and supervision of interest in land and building which is also called landed properties and the proper use of movable properties with the aim of securing maximum return. Most times returns are financial but it may also be social benefits, prestige, status, political power or other group of goals.

Property Management can be divided in to two:
Portfolio Management
Property Asset Management
Portfolio Management is the management of cohesive group of property with the aim of maximizing financial returns for the benefit of the investor on the best term available. An example is managing properties developed by real estate investors.

Property Asset Management on the other hand is the management of properties used for the core business of an organization such as educational institutions, health institutions etc.

Every real estate owner or property investor desires his or her investment protected. The investment value of the property must be seen to be at least preserved or rising. The property must post good gross profit and the return on investments must be good. If you are a real estate owner, then, you must begin to hit the roads in search of the right people who can help achieve aforementioned objective. As leading experts in the real estate sector, the push for their creative machinery and experience comes from the need to get your property effectively managed to produce the results you need. If it's well managed, you can register tremendous success in your investment activities, but if your investments are not managed well, then you could be heading for trouble. So, who is the rightful person who can help you, with the effective management of your real estate investment?

a. The role of the property manager places him in a relationship with his client, the property owner. A lot of confidence and trust is reposed in him to manage the property owner's investment. He makes sure he delivers his job based on complete respect and confidence. He ensures that, the property is put to its optimum use to generate the expected income flow. Usually, he is contracted to deliver his task by the property owner himself, or he may be working for a management company. Whichever way, he obtains his income or paid remuneration for the period of the responsibility given to him.

b. The property manager should be a disciplined, honest, ethical, and trustworthy person. He should be somebody to be relied upon. He should be somebody of a good integrity. Because of his role, he has access to funds from the real estate investments meant for the property owner. As the manager in charge, he may collect rental incomes from tenants on behalf of property owners and at the same time, he may be responsible for the disbursement of maintenance funds meant for maintaining the property on behalf of the owner. This requires somebody of high integrity and trust, who can properly account for all funds entrusted in his care. He must also be detailed oriented who should be interested in any financial detail as far as the management of the property is concerned.

c. He must be knowledgeable and be somebody who possesses knowledge and wisdom to deal with issues in the industry. He must be widely read person who on daily basis continue to update himself on daily trends of the property market. He appreciates the fact that, the property market, often goes through different periods of volatility. This should position him to be able to keep understanding the dynamics of the industry. He is always on high alert to environmental issues affecting the property market. That means that, he must be somebody who can conduct his own market research on regular and periodic basis to be able to stay close to issues affecting the market. He must be able to understand the legal language of the lawyers in their preparation of documents, leases, agreements, etc.

d. Property managers must possess good communication as well as interpersonal skills to be able to communicate and relate well with tenants as well various players in the industry. They may include quantity surveyors, architects, plumbers' lawyers, and people from all walks of life.etc. This is an important attribute of the manager in his dealings .A good manager must have the patience for people. Since he will be dealing with people from all walks of life, his temperament frustrations, anger,

etc should be highly controlled, and managed as not to create frictional relationship with customers. He needs to be able to stay calm even in the face of provocation. He must also have a reasonably good level of bargaining power to be able to negotiate well with important stakeholders in the industry.

e. In this modern day and age, where technology is gradually becoming the driving force for businesses, the property owner must be very well versatile with the use of the computer. He must understand its usage well and be able to make full use of the benefits that it comes with. The computer today is a very important tool for any business desiring to grow and expand. People can assess information from any part of the world in seconds. Whether in their bedrooms, kitchens, dinning halls, washrooms, sporting centers etc, the use of the internet now makes it possible to obtain information from an y where. Therefore the manager must be good at it.

Managing real estate investments from the completion of development or acquisition of the property through is life cycle including renovation, management and disposition is the responsibility of the property manager.

In the management of a property as a long term investment, three major issues are involved:

a.Routine Administration- You have to arrange for a competent manager to maintain the properties cash flow and value. The objective is to have routine details attended to by the manager.

b.Adopting to change periodically, the property's productivity relative to changing market trend and environmental conditions must be analyzed and the possibility of investing additional capital determined to change the use, to modernize the property in order to improve rental income.

Maintaining leverage and disinvestment- analysis for possible refinancing or reinvestment should be undertaken periodically to ensure that you the investor is getting the best possible rate of retune on equity, on a risk adjusted after task rate of return basis.